search instagram arrow-down

A Santa Rally is Highly Unlikely

So, it appears that China and the U.S. have decided to play nice, which is all good and civilized, but unfortunately the stock market is powered by earnings and future expectations. Fundamentally speaking, nothing has changed. We still have high corporate debt levels and the possibility that trade hostilities will resume in January because we live in the age of Trump and we don’t know where he will draw the line.

Today’s rally has to hold, but if we fade at the closing, this will reconfirm many of our fears. The momentum was clearly negative to begin with and traders will use this as an opportunity to dump stocks. In times like this, it’s better to think in terms of years not days or weeks. It’s the only way to survive. 

Leave a Reply
Your email address will not be published. Required fields are marked *

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: